10-KPeriod: FY2013

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2013

Filed February 25, 2014For Securities:ES

Summary

Eversource Energy (ES), formerly Northeast Utilities (NU), reported strong financial performance for the year ended December 31, 2013. The company successfully integrated its merger with NSTAR, which closed in April 2012, leading to significant revenue and earnings growth. Net income attributable to controlling interest reached $786 million, or $2.49 per share, a substantial increase from the prior year. This growth was driven by improved performance across all segments, particularly electric distribution and transmission, benefiting from colder weather patterns and increased investments in infrastructure. The company also projected robust capital expenditures of $7.6 billion from 2014-2017, primarily focused on electric and natural gas distribution and electric transmission upgrades, indicating a commitment to future growth and reliability.

Financial Statements
Beta
Revenue$7.30B
Operating Expenses$5.77B
Operating Income$1.53B
Interest Expense$338.70M
Net Income$793.69M
EPS (Basic)$2.49
EPS (Diluted)$2.49
Shares Outstanding (Basic)315.31M
Shares Outstanding (Diluted)316.21M

Key Highlights

  • 1The company reported net income attributable to controlling interest of $786 million, or $2.49 per diluted share, a significant increase from the prior year, driven by the full year inclusion of NSTAR's results and operational improvements.
  • 2Capital expenditures are projected at $7.6 billion from 2014-2017, with $3.5 billion allocated to electric and natural gas distribution segments and $3.7 billion to the electric transmission segment.
  • 3The Electric Distribution segment, which includes generation, was the largest contributor to earnings, showing $427 million in net income.
  • 4Transmission segment earnings also saw a notable increase to $287 million, reflecting ongoing investments in regional transmission infrastructure.
  • 5The company successfully managed storm restoration costs, deferring significant expenses that were considered probable of recovery from customers through regulatory processes.
  • 6Eversource Energy maintained solid credit ratings from major agencies, with Moody's upgrading its corporate credit and securities ratings for NU, CL&P, and PSNH, and WMECO by two levels, reflecting the company's stable financial health.
  • 7The merger with NSTAR was largely completed and integrated, with the company highlighting the positive financial and operational impacts of this strategic combination.

Frequently Asked Questions

Eversource Energy reported a net income attributable to controlling interest of $786 million, or $2.49 per diluted share, in 2013. This represents a significant increase from 2012, primarily due to the full year inclusion of NSTAR's results following the April 2012 merger and improved operational performance across its segments.

The company projected capital expenditures of approximately $7.6 billion from 2014 through 2017. The majority of these investments are directed towards its electric and natural gas distribution segments ($3.5 billion) and its electric transmission segment ($3.7 billion), indicating a strong focus on infrastructure upgrades and expansion.

The merger with NSTAR, completed in April 2012, had a significant positive impact on 2013 results. The full year inclusion of NSTAR's operations contributed to higher revenues and earnings across all segments, and the company highlighted successful integration efforts that led to cost savings and improved operational performance.

Eversource Energy experienced several significant storms in 2013, including the February blizzard. The company deferred substantial storm restoration costs, which management believed were prudent and probable of recovery from customers through applicable regulatory processes, mitigating the immediate impact on financial results.